Crypto exchange Gemini, owned by the Winklevoss twins,
has announced the return of $2.2 billion to users of its Earn program after
halting withdrawals 18 months ago, CNBC reported. This move followed a
substantial settlement between the New York attorney general and Genesis,
Gemini’s lending partner.
With the $2 billion settlement, defrauded investors
are expected to fully reclaim their losses, marking a significant victory for
the affected investors. The resolution between Gemini and Genesis was brokered
with the oversight of the New York attorney general.
Gemini’s Earn
program was launched in 2021 to offer users the opportunity to earn attractive
yields on their cryptocurrency holdings. By participating in the program, users
entrusted their assets to Gemini, which then facilitated lending to
institutional borrowers through Genesis Global Capital.
However, the program faced challenges in November 2022
when Genesis halted new loan originations and redemptions, prompting Gemini to
suspend withdrawals. Gemini committed to return 100% of digital assets back to
Earn program users. The company approach, coupled with regulatory intervention,
has paved the way for a substantial recovery for affected investors.
Gemini reportedly emailed users that the initial Earn
distributions, approximately 97% owed to users by Genesis, were available in
Gemini accounts. The crypto exchange said that the new settlement followed a
settlement with Genesis and other creditors, which will result in Earn users
receiving full reimbursement.
At $2.18 billion, the distribution reportedly
represents a 232% recovery for users since Gemini suspended withdrawals for
users in its Earn program.
Expect ongoing updates as this story evolves.
Crypto exchange Gemini, owned by the Winklevoss twins,
has announced the return of $2.2 billion to users of its Earn program after
halting withdrawals 18 months ago, CNBC reported. This move followed a
substantial settlement between the New York attorney general and Genesis,
Gemini’s lending partner.
With the $2 billion settlement, defrauded investors
are expected to fully reclaim their losses, marking a significant victory for
the affected investors. The resolution between Gemini and Genesis was brokered
with the oversight of the New York attorney general.
Gemini’s Earn
program was launched in 2021 to offer users the opportunity to earn attractive
yields on their cryptocurrency holdings. By participating in the program, users
entrusted their assets to…
